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What is the significance of the Wood v.
Steele Supreme Court case in shaping the doctrine of sovereign immunity in the United States?
Wood v.
Steele established the "arithmetic" or "amount in controversy" test for diversity jurisdiction in federal courts.
The case involved Henry C.
Wood, a citizen of New York, suing John M.
Steele, a citizen of Illinois, for breach of contract.
The Supreme Court held that a federal court had jurisdiction to hear a case where the amount in controversy exceeded $500, there was complete diversity of citizenship between the parties, and the case did not arise under federal law.
The Wood v.
Steele decision established an important precedent for the scope of federal court jurisdiction in the United States.
The Supreme Court clarified that the issue of diversity jurisdiction should be determined at the time of filing, rather than at the time of trial.
Wood v.
Steele is significant because it established the "complete diversity" requirement for diversity jurisdiction, meaning that all plaintiffs must be diverse from all defendants.
The case also confirmed that the amount in controversy must be a real and substantial controversy, not a merely technical or fictitious one.
Wood v.
Steele has been cited in over 3,000 subsequent court decisions, demonstrating its ongoing significance in shaping the doctrine of sovereign immunity in the United States.
The case has been interpreted to allow federal courts to hear diversity cases even when state courts might also have jurisdiction.
Wood v.
Steele exemplifies the importance of federal courts in providing a neutral forum for resolving disputes between citizens of different states.
The decision has also been used to limit the diversity jurisdiction of federal courts in certain cases, such as when the parties have a close relationship or are merely "nominal" parties.
Wood v.
Steele highlights the complexity of jurisdictional issues in the United States legal system and the ongoing debate over the appropriate role of federal courts in resolving disputes between private parties.
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